"The proportion of coal in China's primary energy mix is equal to that of the global energy structure almost a century ago, which is indeed worrisome, but also means there are opportunities."

Says Huang Xiaoyong, director of the global energy security research center under the Graduate School of the Chinese Academy of Social Sciences. From 1980 to 2014, the proportion of coal accounted for 78.90% in China’s primary energy production, and the proportion of coal consumption accounted for 74.41%. Coal always rules the roost in China’s energy field. (China energy statistical yearbook 2015)

The coal reliance in China is really astonishing and alarming. In 2014, China contributed 50.6% to the whole coal consumption of the world. Also, China is the only country whose quantity of coal consumption reached 1 billion tons of oil equivalent in the world.

China's reliance on coal is a result of the country's resource distribution - rich in coal but poor in oil and gas - and its need to maintain economic growth and energy security. Massive coal production powered China's economic advance in the past few decades. But now, is it time for coal to make way for new energy?

Source: Statistical Review of World Energy 2015, BP

In China, the proportion of coal is 66% in primary energy structure, way high from other countries and world average 27%.

Natural Curse

Pollution, accidents, expenses, they are the original sin of coal.

Floating Coals

These two coal maps are almost in a central symmetry. The left map shows the amount of coal consumed per unit of GDP in provinces. Lighter color means the ratio is lower, and the efficiency of energy using is higher. The other map shows the coal capacity in different provinces, and lighter color means more output.

Coal Map: Provincial- Consumption/GDP & Provincial- Production

Figures from: China Energy statistical yearbook 2015, China statistical yearbook 2015

This symmetry tells a pessimistic status: the distribution of coal resources in China is totally contrary to the layout of energy using efficiency level in China. The coal is floating, every day, from the coal-rich provinces to the northern and eastern areas; this asks for tech, rails and payment. Meanwhile, those developing coal-rich areas were made to suffer from over-exploitation and environmental pollutions, which are hard to recover.

Mine

Accidents

The map shows the serious accidents in Shanxi caused by gob areas in recent years.
The latest statistics given by the Office of the People's Government of Shanxi Province indicates that the gob areas caused by coal mining amounts to 5000 square kilometers , about 3% of the total area of Shanxi Province. Up to now, nearly 3000 square kilometers of the gob areas has collapsed, which resulted in 2,600,000 people endured massive losses in precious lives and property.

Figures from: Management planning of mining subsidence area in Shanxi Province

Bibliography: Wu Yanli, Zhang Zhuoran, Liu Tao, Discussion on control measures of noise pollution in coal mine, 2013

Strong

Impacts

Activities of coal mine production also made the residents around in a wretched existence. The left chart depicts the impact areas of the coal mine activities, which include waste water, noise and water scarcity. However, the real situations are much more complex and austere. There are nearly one thousand of such mines in Shanxi. Wherever the coal mine passes, it leaves behind a trail of devastation.

Direct

Victims

In the latest analysis, the miners are the most directly and hardest victims of the coal mining activities. 2013 Chinese Health Statistics Yearbook released a series of information about the health situation of miners. From the following data graph we can see that how harmful mining could be, as miners have to bear the noise and dust from coal mining.

Statistics from 2013 Chinese Health Statistics Yearbook

Transition on Road

After the 12th Five-YearPlan,
Green energy has become the popular and the transition for energy structure is being made.

In 2010, the National Development and Reform Commission had confirmed the government will take concrete actions to develop a low-carbon economy.

-2.6	%decrease in 2015 China coal production. The number is the highest ever since.

Coal consumption accounted for 64% of the primary energy use last year, down 4.5 percentage points from the share in 2012, as the government pushes for cleaner and greener growth despite the slowing economy.

"The data showed China's energy structure is becoming more diversified and optimized," said the NBS. China won't approve any new coal mines before the end of 2019, according to the State Council, as authorities work to slash overcapacity in the industry.

The country will shut down 500 million tons of capacity and consolidate another 500 million tons into the hands of fewer but more efficient mine operators in the next three to five years, according to a guideline issued by the council. In the past five years, China eliminated about 560 million tons of coal production capacity and closed 7,250 coal mines.

The proportion of coal is declining in production, consumption and investment. Meanwhile, the coal stock also decreased as China is controlling the oversupply in coal industry.

China has specified that it aims to bring the share of non-fossil energy to 15% by 2020 and 20 percent by 2030. In addition, coal consumption will be limited to 62% of energy use by 2020.

Deeper Challenges

However, lessen the proportion of coal might bring some cold. Though the data showed an optimized outlook, there are still substantial troubles on the way of energy structure transition.

They were called “overcapacity”

Energy structure transition asks for slashing overcapacity in coal industry. This might not be good news for coal workers. Government policies to cut overcapacity means 1.8 million Chinese coal and steel workers will lose their jobs, Yin Weimin, the minister of human resources, said on a press conference on Feb 29, 2016.

The rapid expansion in golden ages now has become heavy burden for many companies. The massive lay-offs was described as “unfortunate but necessary”.

Yin Weimin said recently that the central government would spend 100 billion Yuan in the next two years to help resettle those laid-off workers in coal, steel and other sectors that suffer from overcapacity. This shows the central authorities' determination to reduce overcapacity as well as resettle laid-off workers.

Pains of Coal Industry

The whole coal mining and processing industry is at a low ebb, just like a fish trapped in a dry rut. Most of the coal enterprises are heading forward laboriously with the pains of inventory pressure, low profit, and a shortage of funds.

Figures from: Analysis on the development status of China's coal industry in 2015

China's coal companies are looking to diversify as they battle a sales slump amid ongoing supply-side reform. “Using less energy to drive more output is the key solution to China's healthy growth." says Zhao Yong, associate researcher of the Energy Research Institute of the National Development and Reform Commission. This is our target. On the road of transition, when we hail for achievement, we should not ignore the sacrifices. Energy structure transition, there is a long way to go.

“Using less energy to drive more output is the key solution to China's healthy growth."